Can Hawaii Survive Without Tourism?

By Robert Palmer

Can Hawaii Survive Without Tourism?

Hawaii is known for its pristine beaches, lush greenery, and vibrant culture. The tourism industry has been the backbone of the Hawaiian economy for decades. However, with the COVID-19 pandemic causing a significant drop in tourism, the question arises – can Hawaii survive without tourism?

The Importance of Tourism in Hawaii

Hawaii’s economy heavily relies on its tourism industry, which accounts for over 20% of its GDP. According to the Hawaii Tourism Authority (HTA), in 2019, the state welcomed over 10 million visitors and generated $17.75 billion in visitor spending.

The industry provides employment to approximately one out of every four people in Hawaii. From hotels and restaurants to tour operators and souvenir shops, thousands of businesses depend on tourists to stay afloat.

The Impact of COVID-19 on Hawaiian Tourism

The COVID-19 pandemic has caused a significant drop in tourist arrivals, with daily visitor numbers plummeting by over 90% since March 2020. The HTA has predicted that visitor arrivals will not return to pre-pandemic levels until 2024 at the earliest.

This drop has had a severe impact on businesses across Hawaii. Many have had to close their doors permanently, while others are struggling to pay rent or wages. The unemployment rate in Hawaii skyrocketed from roughly 3% before the pandemic to over 20% at its peak.

Alternative Industries

While it may seem like an impossible task for Hawaii to survive without tourism, there are alternative industries that could help fill the void left by the decline in visitors.

  • Agriculture: Hawaii’s fertile volcanic soil provides ideal conditions for growing crops. The state already exports coffee, macadamia nuts, and pineapples to other countries.

    With the right investment and infrastructure, Hawaii could increase its agricultural output.

  • Technology: Hawaii is home to several tech companies, including Google’s data center in Hamakua. The state has also been working to attract more tech startups by offering tax credits and other incentives.
  • Renewable Energy: Hawaii has set a goal to run on 100% renewable energy by 2045. With abundant sunshine and strong winds, the state has enormous potential for solar and wind power generation.

The Road Ahead

While these alternative industries show promise, they are not yet capable of replacing the tourism industry’s economic impact fully. However, Hawaii could use this opportunity to diversify its economy and reduce its dependence on tourism.

The pandemic has highlighted the vulnerabilities of relying solely on one industry. By investing in alternative industries, Hawaii can create a more resilient economy that can weather future crises better.

Conclusion

Hawaii’s tourism industry has taken a severe hit due to the COVID-19 pandemic. While it may be challenging for the state to survive without tourism entirely, investing in alternative industries could help reduce its dependence on this sector. By creating a more diversified economy, Hawaii can become more resilient and better equipped to face future challenges.